STP Reporting: Final Call for Payment Summaries
With all businesses expected to be Single Touch Payroll (STP) ready by 1 July 2019, it appears that this year is likely to be the last for manual payment summaries. PaysOnline managed payroll is STP ready meaning you can shift your focus onto the more important aspects of your business.
Currently, payment summaries are generated annually for employees in order for tax returns to be filed at the end of the financial year.
As Single Touch Payroll reporting collects payroll data after each pay event, it will make the issuing of annual summaries redundant.
STP reporting requires employers to provide payroll data to the tax office automatically with each pay event, including information such as year-to-date data on employee earnings and tax withheld amounts.
Employees will be able to access this information through their myGOV accounts, thus eliminating any need for manual end of year reports.
This guide provided by the ATO, states that “[your] employer is not obligated to give you an end-of-year payment summary for the information they report through STP,” noting that the law has changed to reflect this new reporting system.
According to the online guide, “Your payment summary information will now be available online in myGov. It will be called an ‘income statement’ (some people may still refer to this as a group certificate).
“You will need a myGov account linked to ATO online services to access your income statement. Your income statement will show your year-to-date salary and wages, the tax that has been withheld and your employer super reported amounts.”
Single Touch Payroll is already being used by substantial employers with 20 or more employees since its introduction on 1 July 2018. PaysOnline have been reporting on behalf of our clients since its introduction.
Don’t risk reporting non-compliance, contact PaysOnline for a STP ready managed payroll service today.
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